JPMORGAN Chase & Co. will pay nearly $1.5 million to settle a federal sexual harassment lawsuit that alleged the company created a hostile work environment for female mortgage bankers at its office outside Columbus, Ohio.

The Equal Employment Opportunity Commission said Tuesday the settlement money will be divided among 16 women who worked at the bank's call centre in its Polaris Park office.

The lawsuit alleged that the office allowed sexually charged behaviour and comments from supervisory staff and other mortgage bankers that resulted in a quote "sexist atmosphere." The government said female mortgage bankers who didn't tolerate the unwelcome actions were ostracised and deprived of lucrative sales calls and other benefits.

The company issued a statement saying it agrees harassment and discrimination have no place in the work environment.